Benchmark KSE-100 index falls 124.09 points PHOTO: AFP/FILE
KARACHI: The stock market closed negative for the fourth consecutive day as a lack of positive triggers kept enthusiasm in check.
The State Bank’s announcement to keep the policy rate unchanged did not have much impact. Weak oil prices due to global glut meant that the oil and gas sector wasn’t immune to the negative mood.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.37% or 124.09 points to end at 33,732.91 on Monday.
According to JS Global analyst Ovais Ahsan, the market continued to trade in a tight range as the decision by the State Bank of Pakistan (SBP) to keep the policy rate unchanged met market expectation.
“The banking sector saw a subdued rally led by United Bank (+0.86%) as the SBP decision brings an end to a cycle of rate cuts which had led to an attrition of banking interest rate spreads.
“The oil and gas sector continued to bleed in line with the rout of global oil markets and index heavyweight OGDC (-1.07%) and Pakistan Oilfields (-1.72%) led the decline.”
Gas utility Sui Southern Gas Company (SSGC +5%) rallied to the day’s ceiling on speculation that the company would soon announce long-awaited results.
“The cement sector fell, led by Lucky (-0.94%) and DG Khan (-1.42%), as news of a Chinese company setting up a plant in the south caused concern over supply and pricing power.”
Meanwhile, Elixir Securities in its report stated that equities closed negative after lacklustre trading on the first trading day after the SBP left the policy rate unchanged in line with expectations.
“Turnover was thin in the wider market as investors continued to trade cautiously on anxiety over foreign selling. While declines have been limited to less than 1% in the last five sessions, disappointing volumes amid no immediate triggers remain a cause for concern.
“Oil stocks tracked global crude and dented the benchmark while only respite came from select financials (UBL +0.86%), fertilisers (Fauji Fertilizer +0.65%) and pharmaceuticals (Feroz Laboratories +5%).”
Trade volumes fell to 144 million shares compared with Friday’s tally of 182 million shares.
Shares of 376 companies were traded. At the end of the day, 122 stocks closed higher, 231 declined and 23 remained unchanged. The value of shares traded during the day was Rs6.2 billion.
TRG Pakistan was the volume leader with 15.4 million shares losing Rs1.80 to finish at Rs38.71. It was followed by Pace (Pak) Limited with 14.2 million shares losing Rs0.37 to close at Rs7.99 and The Bank of Punjab with 9.5 million shares losing Rs0.15 to close at Rs9.24.
Foreign institutional investors were net buyers of Rs22 million worth of shares during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 24th, 2015.
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